1 / 10

Common Reasons Why a Mortgage Loan is Denied

Loan application rejection is just as common as approvals. You may end up in a difficult position if you had decided to use your property as a mortgage for a loan, only to be turned down by the lender. Since mortgage loans come with a low mortgage loan interest rate, denied mortgage loans can impact your financial future and disrupt your years of planning. However, knowing the common reasons for mortgage loan rejection can help you in reworking your plan to meet the expectations of the lending institution.

HeroFinCorp
Download Presentation

Common Reasons Why a Mortgage Loan is Denied

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Common Reasons Why a Mortgage Loan is Denied

  2. Insufficient down payment • Small down payment lowers the chance of mortgage loan approval. 1

  3. Recent employment switch • Frequent job changes and lack of steady income increases the possibility of mortgage loan denial. 2

  4. High debt-to-income ratio • A debt-to-income ratio of more than 50% increases the chance of mortgage loan denial. 3

  5. Poor credit score • Mortgage loan approval is easy when you have a high credit score. 4

  6. Lack of credit history • If you have little or no credit history, the lender can deny your loan application. 5

  7. Inaccurate tax filing • File a revised return to get your mortgage loan approved. 6

  8. Debt in business • A high debt burden in business lowers the chance of mortgage loan approval. 7

  9. To get your mortgage loan approved quickly, review your mortgage loan rejection letter and work on the weak factors. 6

  10. Thank You ! Would Love to hear from you. Hero Fincorp Limited 09, Basant Lok, Vasant Vihar, New Delhi - 110057 Tel : 18001024145 Email : corporate@herofincorp.com Website : https://www.herofincorp.com/ Know More : https://www.herofincorp.com/blog/common-reasons-why-a-mortgage-loan-is-denied

More Related